09:10 AM EST, 03/06/2024 (MT Newswires) -- Gilead Sciences ( GILD ) and Merus (MRUS) said Wednesday they have signed a research collaboration, option, and license agreement to discover and market novel T-cell engager antibodies.

The companies said Gilead will bring its oncology expertise and Merus its Triclonics platform to research and develop multiple, separate preclinical research programs for novel dual tumor-associated antigens targeting trispecific antibodies.

Merus, which will lead research for two programs and potentially a third, will receive an upfront cash payment of $56 million for initial targets and an equity investment by Gilead of $25 million in Merus common shares, according to the companies.

Merus is also eligible to receive up to $1.5 billion in near-term and option payments, potential development and commercialization milestones, and tiered royalties should Gilead successfully commercialize a therapy from the collaboration, the companies added.

This transaction with Merus is expected to reduce Gilead's 2024 earnings by $0.03 to $0.05 per share, the companies said.

Price: 72.6, Change: -0.39, Percent Change: -0.53